Good News For Cryptocurrency

Uncertain Stock Market Could Be An Uplifting News For Cryptocurrency

Where investors respond to the forthcoming Bitcoin Cash hard fork, the market continues to await news circling the approval of a Bitcoin Exchange-Traded Fund by the Securities and Exchange Commission of United States. This move could signal the entrance of the large capital institutional investors.

The lack of interest was behind the slow burn effort of Wall Street to get involved in the crypto world. Though a falling, as well as the uncertain stock market, could make way for greater crypto recognition as investors look to get out of the traditional markets and into a growing price stable landscape of Bitcoin.

Goldman Sachs bear market prediction tool, on Monday, was updated to “flashing red” that indicates the achieving of the highest level of instability as well as regression to come by the stock market. The tool, historically, has shown a 0% return over the next 12 months while additionally signaling that stocks pose a substantial risk for the investors who continue to trade and stick by them.

As indicated by CNBC –

“Goldman’s bear market indicator — which takes into account the unemployment rate, manufacturing data, core inflation, the term structure of the yield curve and stock valuation based on the Shiller PE ratio — is at a rare 73 percent, its highest level since the late 1960s and early 1970s.

The caution from one of Wall Street’s banking bellwethers came as the Dow Jones Industrial Average and S&P 500 each added to steep losses over the past few weeks. The Dow finished Monday’s session down 602 points — or 2.3 percent — while the broader S&P’s slid 1.9 percent, bringing its three-month move to a loss of 3.7 percent.”

Peter Oppenheimer, the chief global equity strategist of Goldman, went on to write that the indicator was approaching an uncertain prediction for the health of the market moving forward, a sentiment that echoes JP Morgan’s prediction which the US market has a 60% chance of recession by the end of 2020.